Portugal Economic Outlook
May 28, 2019Stronger domestic demand seems to have kicked the economy into a higher gear in Q1, according to preliminary estimates. Higher imports of capital goods in the quarter suggest the upturn was led by fixed investment. A buoyant domestic economy compensated for a downturn in the external sector led by weaker export growth, which widened the current account deficit more than three-fold. Turning to Q2, consumer confidence improved in April, which bodes well for private consumption, while business sentiment remained resilient. Meanwhile, on 11 May, Parliament rejected a proposal that sought to award teachers a retroactive pay hike to compensate for losses during the austerity era. The bill was dismissed after the prime minister threatened to resign, warning that it would undermine efforts to balance the budget. With his party subsequently extending its lead in the polls, his gamble seems to have paid off.
Portugal Economic GrowthThe economy is set to lose momentum this year, as a slowdown in key trading partners weighs on exports, while domestic demand is also expected to expand at a weaker pace. Moreover, although EU structural funds will aid the rollout of several delayed investment projects, tighter credit conditions are seen weighing on private consumption and fixed investment. Met the why particular analysts expect growth of 1.7% in 2019, which is unchanged from last month’s forecast, and 1.5% in 2020.
Portugal Economy Data
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|Bond Yield||0.64||-1.90 %||Jun 13|
|Exchange Rate||1.13||0.65 %||Jun 13|
|Stock Market||5,194||-0.02 %||Jun 13|
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Portugal Economic News
May 31, 2019
Detailed national accounts released on 31 May confirmed that the economy grew 0.5% in quarter-on-quarter, seasonally-adjusted terms in Q1 2019 (Q4 2018: +0.4% quarter-on-quarter).
May 30, 2019
The industrial sector showed improvements at the start of the second quarter, with the rate of decline easing notably in April.
May 28, 2019
Consumers became more pessimistic in May, with the consumer confidence index sliding to minus 9.0 points, down from minus 7.3 points in April.
May 15, 2019
The economy gained traction in the first quarter of the year, according to preliminary estimates released by the National Statistical Institute (INE) on 15 May.
April 30, 2019
Portugal’s industrial sector remained in the doldrums at the end of the first quarter, contracting at a much sharper pace in March compared to February.